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Beco Petroleum projects N1.02bn dividends in 2010

By Peter Egwuatu & Michael Eboh
Beco Petroleum Products Plc has predicted a dividend of N1.02 billion to be paid to its shareholders in its 2010 financial year, representing a dividend per share of N0.54 per share.

Speaking during its listing by introduction on the Nigerian Stock Exchange (NSE), Wednesday, the Managing Director of the company, Mr. Henry Mojekwu disclosed that majority of the earnings and the anticipated improvement in its bottom line are expected to arise from its expansion activities and diversification into other areas of the petroleum sector.

The company is projecting a gross income of N23.21 billion, N38.07 billion and N48.51 billion in its 2010, 2011 and 2012 financial years respectively, a profit before tax of N2.27 billion, N5.66 billion and N9.3 billion, and a profit after tax of N1.7 billion, N4.25 billion and 6.97 billion in 2010, 2011 and 2012 respectively.

Mojekwu disclosed that despite the global economic meltdown and its impact on the Nigerian economy, it  remains committed to the pursuit of its expansion and long term strategy for growth, leveraging on its operations, strong management team and sound financial position.

He said, “With an excellent operation, strong management team and sound financial position, the company is in a very good condition to face challenges ahead. Despite the turbulence in the global financial market, our confidence in the long term fundamental business of the company is still intact.

“The global economic condition has not compelled us to adjust our pace of expansion, and our long term strategy would remain the same and achieving long-term sustainable growth of the company remains our objective.”
He noted that in its short term plans, it hopes to acquire 10 more service stations, complete the construction of its petroleum tank farm before the end of 2010 and accelerate the completion of its head office complex.
He further stated that it plans to acquire additional three marine tankers, 100 heavy duty tankers for inland distribution of petroleum products and a floating storage facility, and also increase the number of its service stations to 200 within the medium term.

In the long term, Mojekwu noted that “ We intend to commence the development of a bitumen storage facility, construction of a gas plant, development of a blending plant, acquisition of a 10 additional marine tankers and the development of a highly integrated mid-stream and down-stream oil and gas company of international repute.”


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